Roku (NASDAQ:ROKU) Stock Price Down 5.2% – Should You Sell?

Shares of Roku, Inc. (NASDAQ:ROKU) traded down 5.2% during trading on Monday . The company traded as low as $83.46 and last traded at $84.42. 3,277,968 shares changed hands during trading, a decline of 15% from the average session volume of 3,855,195 shares. The stock had previously closed at $89.06.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on the company. JPMorgan Chase & Co. lifted their price target on Roku from $115.00 to $125.00 and gave the stock an “overweight” rating in a report on Friday, December 12th. KeyCorp raised their target price on Roku from $128.00 to $130.00 and gave the stock an “overweight” rating in a research report on Friday, February 13th. Needham & Company LLC restated a “buy” rating and set a $110.00 target price on shares of Roku in a research note on Friday, February 13th. Benchmark reiterated a “buy” rating on shares of Roku in a research note on Wednesday, February 4th. Finally, Wedbush boosted their price objective on shares of Roku from $130.00 to $140.00 and gave the stock an “outperform” rating in a research report on Friday, February 13th. One analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $123.96.

Roku Stock Down 5.2%

The firm has a market capitalization of $12.45 billion, a price-to-earnings ratio of 148.11 and a beta of 1.99. The company has a fifty day moving average price of $101.88 and a two-hundred day moving average price of $99.11.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Thursday, February 12th. The company reported $0.53 EPS for the quarter, beating the consensus estimate of $0.28 by $0.25. Roku had a net margin of 1.87% and a return on equity of 3.40%. The firm had revenue of $1.39 billion during the quarter, compared to the consensus estimate of $1.35 billion. During the same quarter in the prior year, the firm earned ($0.24) EPS. Roku’s revenue for the quarter was up 16.1% on a year-over-year basis. On average, equities analysts anticipate that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Anthony J. Wood sold 75,000 shares of the firm’s stock in a transaction on Monday, January 12th. The shares were sold at an average price of $109.61, for a total value of $8,220,750.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Dan Jedda sold 3,000 shares of the business’s stock in a transaction dated Thursday, January 15th. The stock was sold at an average price of $107.56, for a total transaction of $322,680.00. Following the transaction, the chief financial officer owned 87,267 shares in the company, valued at approximately $9,386,438.52. This trade represents a 3.32% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 219,710 shares of company stock valued at $22,761,608. Company insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

Institutional investors have recently added to or reduced their stakes in the business. Kera Capital Partners Inc. raised its stake in shares of Roku by 40.5% during the 4th quarter. Kera Capital Partners Inc. now owns 5,563 shares of the company’s stock worth $604,000 after buying an additional 1,603 shares in the last quarter. Virtu Financial LLC acquired a new position in Roku during the fourth quarter worth $1,112,000. Compound Planning Inc. grew its stake in shares of Roku by 32.4% during the 4th quarter. Compound Planning Inc. now owns 3,688 shares of the company’s stock worth $400,000 after purchasing an additional 902 shares during the period. Invesco Ltd. increased its holdings in shares of Roku by 6.8% in the 4th quarter. Invesco Ltd. now owns 205,115 shares of the company’s stock valued at $22,253,000 after purchasing an additional 13,111 shares in the last quarter. Finally, Corient Private Wealth LLC lifted its stake in shares of Roku by 1,836.4% in the fourth quarter. Corient Private Wealth LLC now owns 296,903 shares of the company’s stock valued at $32,211,000 after purchasing an additional 281,570 shares during the period. Hedge funds and other institutional investors own 86.30% of the company’s stock.

About Roku

Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.